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towards the child-support arrearage. Petitioner is appealing the
superior court's decision. For purposes of this case, however,
the Court assumes that petitioner is Grant's biological father.
Petitioner timely filed his 1998 Federal income tax return
as head of household and reported income of $44,417. Petitioner
claimed a dependency exemption deduction and a child tax credit,
naming Grant as his "qualifying child". Respondent issued a
notice of deficiency determining that petitioner is not entitled
to head of household filing status, the dependency exemption
deduction, or the child tax credit because he failed to
substantiate his claims.
Discussion
Deductions are a matter of legislative grace, and taxpayers
must maintain adequate records to substantiate the amounts of any
deductions or credits claimed. Sec. 6001; INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); sec. 1.6001-1(a), Income
Tax Regs. The Court decides this case without regard to the
burden of proof. Accordingly, the Court need not decide whether
current section 7491(a)(1) is applicable in this case. See
Higbee v. Commissioner, 116 T.C. 438 (2001).
1. Dependency Exemption Deduction
Section 151(c) allows a taxpayer to deduct an exemption
amount for each "dependent" as defined in section 152. Section
152(a) defines a dependent to include a son or daughter of the
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